This Unlimited Usage Crisis Will Pass

We all understand why some customers are not happy to lose their unlimited usage mobile plans. I know that service providers did not come to this decision lightly, and they expect to work their marketing and PR teams 24/7 during the transition. But after a period of denial wondering why service providers can’t just upgrade networks without returns for their investment, and maybe go so far as to organize a social-network revolt or two, customers will adjust to a world of bandwidth management. When the banking industry introduced automatic teller machines (ATMs), their goal was to reduce labor costs. Consumers saw only the added convenience of ATMs, and banks were happy to take credit for that value. Until a decade later when interbank surcharges became onerous and point-of-sale vendors entered the game. Consumers protested. But today, if you need the convenience of using the nearest branch (or if you want to buy the last round at the local pub but your wallet is empty), you authorize the $2 fee to get what you need when you need it.

Broadband access will be no different. Given that the economics are the same for most services providers, those feeling disenfranchised by tiered pricing plans won’t have many places to turn, over the long run, for an unlimited service that caters to high-volume users with thin wallets. (There are no magic network bullets that I am aware of to support that business model.) One difference, however, may be that service providers can have more creativity when it comes to pricing, and can offer their customers more personalized and dynamic pricing schemes to fit their individual and changing needs. Delivering quality service at a reasonable price will still be the overriding driver for customer satisfaction, but maybe the customer who was paying for “unlimited data” really needs “100MB of voice calls, up to 200MB of video, and up to 500MB of data.” And is willing to pay for it.

Adan Pope is the chief strategy officer for Telcordia, a global leader in the development of fixed, mobile and broadband communications software and services. He also serves as CTO for their OSS and service delivery businesses.